BETTER Food BETTER People BETTER Life
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KOUFU GROUP LIMITED GROUP KOUFU KOUFU GROUP LIMITED (Company Registration No: 201732833D) ANNUAL REPORT REPORT ANNUAL 18 Woodlands Terrace Singapore 738443 Tel: +65 6506 0161 Fax: +65 6752 1811 www.koufu.com.sg 2018 BETTER food BETTER people BETTER life 2018 ANNUAL REPORT TABLE OF Contents 01 02 03 04 OUR ABOUT KOUFU ISLANDWIDE CORPORATE CHAIRMAN’S GROUP LIMITED NETWORK MILESTONES MESSAGE 07 09 10 12 FINANCIAL & BOARD OF KEY FINANCIAL OPERATIONS DIRECTORS MANAGEMENT HIGHLIGHTS REVIEW 16 17 21 22 OUR AWARDS AND MULTI-BRAND INVESTOR GROUP ACCOLADES STRATEGY RELATIONS STRUCTURE 23 24 59 150 FINANCIAL STATEMENTS CORPORATE AND NOTICE OF CORPORATE GOVERNANCE ADDITIONAL AGM AND INFORMATION REPORT INFORMATION PROXY FORM ANNUAL REPORT 2018 KOUFU GROUP LIMITED 01 ABOUT Koufu GROUP LIMITED Established in 2002 and listed on the Mainboard of the SGX-ST since July 2018, Koufu Group Limited (“Koufu”, 口福集团有限公司, or together with its subsidiaries, the “Group”) is one of the most established and largest operators and managers of food courts and coffee shops in Singapore, with a presence in Macau. Since its inception, Koufu’s philosophy has been to integrate modern management discipline into its business while retaining the traditional coffee shop culture, with particular emphasis on providing patrons with value for money dining options in a comfortable environment – congruent with its core values in its vision towards “Better Food”, “Better People”, “Better Life”. Koufu’s business comprises two segments – outlet & mall management and F&B retail. Under the outlet & mall management business segment, Koufu operates and/or manages food courts, coffee shops, a hawker centre and a commercial mall. Under the F&B retail business segment, it operates F&B stalls located within its food courts and coffee shops or within third party food courts as well as F&B kiosks, quick-service restaurants and full-service restaurants, amongst others. In less than two decades, Koufu’s outlet & mall management business segment has grown to a sizeable islandwide network. Koufu’s multi-brand business model and network of F&B outlets currently comprises a portfolio of unique and distinct brands, each focusing on different types of cuisine and dining experiences at various price points to its consumers with varying tastes, preferences, budgets and occasions. 02 KOUFU GROUP LIMITED ANNUAL REPORT 2018 ISLANDWIDE Networ k As at FY2018 OUTLET & MALL MANAGEMENT F&B RETAIL MACAU MACAU 46 1 15 69 2 8 FOOD COURTS COFFEE SHOPS F&B STALLS QUICK-SERVICE RESTAURANTS (“QSR”) MACAU 1 1 9 1 3 HAWKER CENTRE COMMERCIAL MALL F&B KIOSKS FULL-SERVICE RESTAURANTS SINGAPORE FOOD COURTS HAWKER CENTRE 1 Bukit Batok Central Link #04-01, West Mall Blk 638A Jurong West Street 61 #01-22, 50 Jurong West Street 61 Commercial Mall 1 Fusionopolis Way #B2-02, Fusionopolis Pioneer Mall 1 Kaki Bukit Road 1 #01-18, Enterprise One Blk 735 Pasir Ris Street 72 #01-336, Pasir Ris West COMMERCIAL MALL 2 Ang Mo Kio Drive #01-14 to 29, ITE College Plaza Blk 168 Punggol Field, Punggol Plaza Central Blk 762 Jurong West Street 75 #01-300, Gek 8 Tampines Central 1, #01-18, Eastlink Mall Poh Shopping Centre F&B KIOSKS 8 Grange Road #B1-01, Cathay Cineleisure Blk 768 Woodlands Avenue 6 #01-30 Orchard Blk 30 Woodlands Ave 1 #01-11 The 2 Bayfront Avenue #01-01 The Shoppes at 10 Sinaran Drive #04-14 to 19 and #04-56 to Woodgrove* Delijoy Marina Bay Sands 73, Novena Square 2 Blk 548 Woodlands Drive 44, #02-34 Vista 26 Sentosa Gateway, The Forum, Resort World 21 Choa Chu Kang North 6 #B1-17-22, Yew Tee Point #B1-208 Point 21 Tampines North Drive 2, Level 3 Giant 6 Raffles Boulevard #04-101/102, Marina 31 Woodlands Ave 9, Republic Polytechnic, Building Square Blk 470 Toa Payoh Lorong 6 South Food Court #01-01 Blk 480 Toa Payoh Lorong 6 #B1-01, HDB Hub 50 Nanyang Avenue NTU, Canteen B South Blk 681 Punggol Drive, #B1-03 Oasis Terrace Blk 681 Punggol Drive, #04-01 Oasis Terrace 2 Bayfront Avenue #B2-49A/50/50A/51/52/53, Spine Food Court Blk 470 Toa Payoh Lorong 6 #02-70 70 Stamford Road #B1-26/28, Li Ka Shing Marina Bay Sands Blk 768 Woodlands Avenue 6 #01-32 10 Eunos Road 8 #01-133 SingPost Centre Library Building, Singapore Management 2 Bayfront Avenue #B2-49A/50/50A/51/52/53, University 11 Tanjong Katong Road #B1-30 Kinex Marina Bay Sands 101 Thomson Road #02-K1 United Square 100 Tras Street #04-04/05, 100 AM 1 Pasir Ris Central Street 3 #03-01/02, White 110 Sengkang East Way, Sengkang General 21 Choa Chu Kang North 6 #01-49/50 Yew Sands Shopping Centre Tee Point* and Community Hospital 5 Straits View #02-04 to 06, Marina One The 180 Ang Mo Kio Ave 8, Block A Unit 235, 80 Marine Parade Road #03-30A Parkway Heart Parade* Nanyang Polytechnic 6 Raffles Boulevard #04-101/102, Marina 370 Alexandra Road #B1-20/21, Anchor Point 100 Tras Street #01-07 100 AM* Square 20 Tampines Central 1 #01-18* Shopping Centre 50 Jurong Gateway Road #05-01, JEM 500 Dover Road Canteen 4, Singapore Blk 991 Buangkok Link #01-27, Buangkok 83 Punggol Central #02-20/21, Waterway Square* Polytechnic Point 535 Clementi Road, Block 51 Level 2, Ngee Ann Blk 991 Buangkok Link #02-21 Buangkok QUICK-SERVICE RESTAURANTS Polytechnic Square* Blk 57 Dawson Road #02-09/10, Dawson Place 9 Raffles Boulevard #01-75 and #01-K5A, Blk 88 Tanglin Halt Road #01-08 COFFEE SHOPS Millenia Walk Blk 118 Rivervale Drive #02-15/16, Rivervale 1 Joo Koon Circle #02-32/33, Fairprice Hub Plaza Blk 18 Jalan Membina #01-01 1 Jurong East Street 21 #01-01, Ng Teng Fong Blk 168 Punggol Field #01-01, Punggol Plaza Blk 132 Jurong Gateway Road #01-271 Hospital Blk 201 Kim Tian Road #01-400 Blk 204 Bedok North Street 1 #01-393 2 Ang Mo Kio Drive #02-10, ITE College Central Blk 258 Pasir Ris Street 21 #02-09, Blk 256 Yishun Ring Road #01-1005 2 Simei Street 3 #01-09, Changi General Loyang Point Blk 267 Compassvale Link #01-02 Hospital Blk 263 Compassvale Street #01-09 Blk 406A Sembawang Drive #01-01 70 Stamford Road #01-21, Singapore Blk 301 Upper Thomson Road #01-113, Blk 433A Sengkang West Way #01-01 Management University Thomson Plaza Shopping Centre Blk 531 Ang Mo Kio Avenue 10 #01-2429 10 Eunos Road 8 #01-151, Singpost Centre Blk 399 Yung Sheng Road #01-43, Taman Blk 622D Punggol Central #01-01 83 Punggol Central #02-20/21, Waterway Jurong Shopping Centre Blk 632 Bukit Batok Central #01-134 Point Blk 671 Edgefield Plains #01-01 Blk 445 Fajar Road #01-548, Fajar Shopping FULL-SERVICE RESTAURANTS Centre Blk 739 Bedok Reservoir Road #01-3139 Blk 478 Tampines Street 44 #01-221 Blk 872C Tampines Street 86 #01-09 1 Maritime Square #02-85, Harbourfront Blk 500 Toa Payoh Lorong 6 #02-30, Toa 1 Tampines North Drive 1 #01-34, T-Space, Centre Payoh Centre Blk 747 Yishun Street 72, #01-108 Nee Soon 9 Raffles Boulevard #01-75A/76, Millenia Walk Blk 511 Canberra Road #01-01 Central Green 301 Upper Thomson Road #01-113, Thomson Plaza Shopping Centre MACAU FOOD COURT F&B KIOSKS/STALL Shop 3008, Shoppes at Cotai Central, Sands Shop 3558, Shoppes at Parisian, Macau Shops 1001/1003/1011 Research Centre N22, Cotai Central, Macau Shops K301/K302/K303, Shoppes at Cotai University of Macau, Taipa, Macau* Central, Sands Cotai Central, Macau * Newly opened in Q1 2019 ANNUAL REPORT 2018 KOUFU GROUP LIMITED 03 OUR Corporate Milestones Successfully listed Our first entry into hospitals on the Mainboard 2018 – Koufu food court opened of the SGX-ST on 18 at Sengkang General and July 2018 Community Hospital 2016 Achieved S$200 milion in sales 2015 revenue Our first full-service restaurant at Millenia Walk opened under our Elemen 2012 brand concept 2010 Our first overseas Koufu food court 2009 at Sands Cotai Central, Macau Opening of Rasapura Masters at Singapore’s iconic, Marina 2004 Achieved S$100 Bay Sands million in sales 2003 revenue 2002 Established our first Successfully tendered central kitchen at for the operation and 18 Woodlands Terrace management of a commercial mall, Punggol Plaza Commenced operations of our first Koufu air-conditioned food court at Toa Payoh HDB Hub 04 KOUFU GROUP LIMITED ANNUAL REPORT 2018 CHAIRMAN’S Message “We will continue to leverage on our established track record and solid experience in the F&B business, whilst remaining agile and resilient to stay ahead of the challenges and intense competition in the F&B industry and deliver forward-looking transformational strategies for quality growth” DEAR SHAREHOLDERS, million and a healthy net cash Looking ahead, our growing business position of S$56.2 million. The On behalf of the Board of Directors, and strong portfolio of multiple Group’s adjusted EBITDA1 of S$42.7 I am pleased to present you brands will continue to offer quality million in FY 2018, increased by Koufu Group Limited’s first Annual food and services to our customers 6.8% as compared to S$40.0 Report for the financial year ended in Singapore and Macau, as we work million in FY 2017, whilst adjusted 31 December 2018 (“FY 2018”), on transforming our business model NPAT2 attributable to owners of the since our successful listing on the beyond the food court business, to Company increased 1.9% to S$26.1 Mainboard of the SGX-ST on 18 July strengthen our foothold in the F&B million from S$25.6 million over the 2018.